AbbVie At the moment$209.25 -0.76 (-0.36%) As of 03/24/2025 03:59 PM Japanese It is a truthful market worth value offered by Polygon.io. Study extra.52-Week Vary$153.58▼$218.66Dividend Yield3.14percentP/E Ratio87.19Price Goal$211.45
AbbVie Inc. NYSE: ABBV is buying and selling close to an all-time excessive after the corporate introduced a licensing settlement with Gubra, a Danish firm. The settlement pertains to Gubra’s experimental weight reduction drug, which is in a Section 1 trial.
AbbVie paid Gubra a $350 million upfront cost for the proper to its experimental weight reduction drug, GUB014295, which is in a Section 1 trial. AbbVie has dedicated to paying Gubra as much as $1.9 billion primarily based on sure improvement and gross sales milestones which might be met.Get AbbVie alerts:Signal Up
However the transfer larger after this announcement simply continues the bullish sample in place with ABBV inventory, which has been up greater than 19% for the reason that begin of the 12 months. Analyst sentiment suggests the inventory nonetheless has room to run larger.
How Gubra Is Completely different From Current Competitors
Getting into the burden loss market is smart for AbbVie when you think about that analysts consider the burden loss drug market could possibly be value $130 billion by 2030. At the moment Novo Nordisk A/S NYSE: NVO with Ozempic and Eli Lilly and Co. NYSE: LLY with Zepbound are the main gamers. And like these two medication, GUB014295 (also called GUBamy) is an injectable drug.
However it’s vital to notice that GUBamy presents a definite distinction that Gubra believes might be a bonus. Each Ozempic and Zepbound goal the GLP-1 hormone. Against this, GUBamy acts as an analog of the physique’s amylin hormone.
Amylin has been recognized as a possible therapeutic goal for weight problems remedy. The hormone offers sufferers’ brains a sense of fullness that helps suppress urge for food, scale back meals consumption, and delays gastric emptying. The optimism is that GUBamy could present a extra long-lasting answer to weight administration. In outcomes from Gubra’s six-week Section 1 examine in 2024, sufferers achieved 3% weight reduction after a single dose.
It’s Not Who’s Promoting, It’s Who’s Shopping for
In February, the AbbVie Insider Trades on MarketBeat present three completely different AbbVie executives bought the corporate’s inventory in February. Retail buyers continuously assign an excessive amount of significance when firm insiders promote inventory. On this case, every commerce was executed pursuant to a Rule 10b5-1 plan.
A Rule 10b5-1 plan is a written settlement between a company insider and a dealer, establishing predetermined buying and selling directions with a predetermined share value, quantity, and transaction date. In every case, these plans had been made in November 2024.
It’s reminder that buyers, even company insiders, promote inventory for a wide range of causes. However there’s normally just one motive they’re shopping for. And within the final 12 months, six completely different members of Congress have purchased ABBV inventory. And as buyers know, Congressional buying and selling doesn’t have the identical oversight as a Rule 10b5-1 plan with regards to potential insider buying and selling.
Analysts Are Elevating Their Worth Targets
AbbVie Dividend PaymentsDividend Yield3.14% Annual Dividend$6.56 Dividend Enhance Observe Record53 Years Annualized 3-12 months Dividend Growth6.04% Dividend Payout Ratio273.33% Subsequent Dividend PaymentMay. 15 ABBV Dividend Historical past
For the reason that announcement in early March, AbbVie inventory reached an all-time excessive at over $216 per share. The inventory has fallen again to round $212 as of this writing, and a few buyers are involved in regards to the inventory’s trailing twelve-month price-to-earnings (P/E) ratio, which is 88x.
Nevertheless, AbbVie’s ahead P/E is barely round 17x, which is barely under the corporate’s ten-year common of round 20x. That implies that fairly than being costly, ABBV inventory could also be buying and selling at a reduction to its historic common and the typical of different shares within the biopharmaceutical and medical sector.
Traders trying to become involved will need to see if different analysts increase their outlook earlier than AbbVie stories earnings in April. Even when you really feel the inventory is simply too costly, chances are you’ll need to take into account beginning a place merely to gather the corporate’s dividend, which at present pays $6.56 per share yearly.Earlier than you take into account AbbVie, you may need to hear this.MarketBeat retains observe of Wall Road’s top-rated and finest performing analysis analysts and the shares they advocate to their purchasers each day. MarketBeat has recognized the 5 shares that high analysts are quietly whispering to their purchasers to purchase now earlier than the broader market catches on… and AbbVie wasn’t on the checklist.Whereas AbbVie at present has a Reasonable Purchase ranking amongst analysts, top-rated analysts consider these 5 shares are higher buys.View The 5 Shares Right here Simply moving into the inventory market? These 10 easy shares can assist starting buyers construct long-term wealth with out figuring out choices, technicals, or different superior methods.Get This Free Report
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